Introduction
In 2007, the Utah Legislature
passed the Parent Choice in Education Program, which, if implemented, will
provide scholarships (vouchers) to children to attend private schools. Unlike
voucher programs in other states that limit scholarships to only low-income
students or students with disabilities, the Parent Choice program will provide
scholarships to all Utah students who meet basic criteria. The Center for Public Policy and
Administration has completed an analysis of the Parent Choice in Education
Program. This analysis provides a
thorough examination of the Parent Choice program by addressing who is eligible,
the standards for private schools, and the fiscal impact on the state and
school districts.

Background of Utah’s
Voucher Law
During the 2007 Legislative Session, the Utah Legislature
passed two bills that provide state-funded scholarships for qualifying children
to attend private schools. The first
bill, HB 148 established the Parent Choice in Education Program. The Parent
Choice program will provide scholarships between $500 and $3,000 for students
to attend private schools. However,
students must meet certain requirements to receive the scholarship. Also, not all private schools will be
eligible to participate in the program and some private schools will choose not
to participate in the program. The second bill, HB 174, makes changes to that
program: 1) requires parents to acknowledge that they are responsible for
transportation costs; 2) requires private schools that accept scholarship
students to employ teachers who have completed a criminal background check; 3)
disqualifies a school that encourages illegal conduct; 4) requires verification
of parent income; 5) changes the date
for the legislative audit of the program to the 2011-12 school year instead of
2013-14 school year; and 6) appropriates an additional $100,000 to the Utah
State Board of Education for administration of the program.

The scholarship program was set to begin in the 2007-2008
school year; however, “The Utah Supreme Court ruled that if a majority of
voters vote in favor of implementation of HB 148, then the Parents Choice in
Education Program under HB 148 and HB 174 will be established. If a majority of voters vote against
implementation of HB 148, then the Program will not be established” (Utah
Legislative Research and General Council 2007).The Parent Choice in
Education Program
The Parent Choice in Education Program, if implemented, will
provide annual scholarships to qualifying children to attend private schools in
Utah. The scholarships range between
$500 and $3,000 per student, depending upon family size and income.
In order to qualify for the program, a student’s custodial
parent or legal guardian must reside in Utah.
The student must be between 5 and 19 years of age (except that a student
who has not graduated from high school may qualify up to age 21). Students must also meet at least one of the following criteria:

Be
born after September 1, 2001;

Be
enrolled as a full-time student in a Utah public school on January 1,
2007;

Not be
a Utah resident on January 1, 2007; or

Be in
a lower income family (student qualifies for reduced lunch)

These four criteria prohibit students currently enrolled in
private schools from receiving the voucher scholarship, unless the student’s
family is low income. Therefore, the
students who will qualify for the scholarship are those just entering
kindergarten, those who were enrolled in a Utah public school on January 1,
2007, students who lived outside of Utah on January 1, 2007, or students from
low-income families who are now enrolled in private schools.

Again, scholarship amounts are based upon the size of the
student’s family and the family’s income.[1]
The amount of the scholarship may not exceed the actual amount of tuition the
student pays to attend the private school.
The chart below shows the scholarship amounts for which students may
qualify based upon family size and income.
For example, a family of four (two parents and two children), with a
family income of $50,000 would qualify for a $2,500 voucher for each child to
attend a private school. A family of
three (two parents and one child), with an income of $90,000 per year, would
qualify for an annual $500 voucher. The
scholarships will apply to all grades.
However, the full-year scholarship for kindergarten is .55 times the
amount of the scholarship award for grades 1-12.

Table
1: Per Student Scholarship
AmountsBased on Family Size and
Income (2007-2008
School Year)

Family Size
[includes parent(s)]

Family Income

$30,000

$40,000

$50,000

$70,000

$90,000

$110,000

$160,000

2

$2,750

$2,250

$1,750

$500

$500

$500

$500

3

$3,000

$2,500

$2,250

$1,000

$500

$500

$500

4

$3,000

$2,750

$2,500

$2,000

$1,000

$500

$500

5

$3,000

$3,000

$2,750

$2,250

$1,750

$500

$500

6

$3,000

$3,000

$2,750

$2,500

$2,000

$1,750

$500

7

$3,000

$3,000

$3,000

$2,750

$2,250

$2,000

$500

8

$3,000

$3,000

$3,000

$2,750

$2,500

$2,000

$500

Source:
Calculations by authors
based upon HB 148.

To receive a scholarship
a parent must apply for
the scholarship from the
Utah Board of Education
by June 1 preceding the
school year. By signing
the application, parents
acknowledge that:

A
private school may not provide the same level of services that are
provided in a public school.

The
private school in which they have chosen to enroll their child has
disclosed to them the teaching credentials of the school's teachers and
the school's accreditation status.

They will
assume full financial responsibility for the education of their
scholarship student if they accept this scholarship.

Acceptance
of this scholarship has the same effect as a parental refusal to consent to
services pursuant to Section 614(a)(1) of the Individuals with
Disabilities Education Act.

Requirements for
Private Schools
Private schools must meet some general criteria in order to
enroll voucher students. First, the private schools must have a physical
location within Utah where students attend classes and have direct contact with
teachers. Second, private schools must comply with the antidiscrimination
provisions laid out in the U.S. Code under which students may not be
discriminated against because of race, sex, color, national origin, disability,
religion, age or status as a parent. Third, private schools must annually
assess each student using a norm-referenced test that compares students’
performance to national results. Fourth, schools must contract with an independent
certified public accountant (CPA) who must submit a financial report at the
time the school applies to accept scholarship students and once every four
years after. Fifth, there are also
requirements for teachers at private schools.
Teachers must pass a criminal background check. Teachers must either hold a baccalaureate or
higher degree or have special skills, knowledge, or expertise that qualifies
them to provide instruction in the subject(s) taught. Sixth, schools must have
an enrollment of 40 students or more.
They cannot operate in a private residence nor can residential treatment
facilities participate in the program.
Lastly, schools that “encourage illegal conduct” are not eligible to
participate in the voucher program.

Given the criteria above, not all private schools will be
eligible to participate in the voucher program. It is equally important to note that not all private schools will
choose to participate in the voucher program.

Fiscal Impact
The
funds for vouchers will be transferred from the General Fund to the State Board
of Education, which will administer the program.[2] In addition, $200,000 will be appropriated
from the General Fund to the State Board of Education for administrative
costs.

The Parent Choice voucher program will have fiscal impacts
on both the state and school districts. Utah school districts receive funding
from the state based on the number of students attending. Fifty percent of the average school
district’s funding comes from the State.[3] When a student leaves a school district
to attend a private school, the school district will lose the funding
associated with that child. The
district costs are reduced as it has one less student to educate. Under the Parent Choice program, the loss of
funding for school districts is mitigated for five years after the student
leaves (or less if the student graduates within five years or moves outside of
the district). When the program is
fully implemented in FY 2020, an estimated 25,964 students will receive vouchers.
The Office of the Legislative Fiscal Analyst estimated the voucher program will
save school districts between $2,441,570 and $11,504,617 in FY 2008. In FY 2020, the program may save school
districts between $11,410,969 and $27,814,011.

The costs to the State of Utah, as estimated by the Office
of the Legislative Fiscal Analyst, are shown in the table below. The annual cost is based on the estimated
average amount of the vouchers ($1926 in FY 2008 and $2826 in FY 2020) and the
estimated number of voucher recipients (5416 in FY 2008 and 25,964 in FY 2020).

Table 2: Costs to the State

FY 2008

FY 2020

Annual Cost of Vouchers

$9,180,333

$70,902,989

Annual Cost of Vouchers (net of transfers to the state)

$5,317,008

$70,902,989

Source: Office of the
Legislative Fiscal Analyst

The fiscal impacts will also change over time as eligibility
changes and school district mitigation efforts are phased out. In the first
year it is implemented, the cost saving to school districts may outweigh the
costs to the State. By the 13th
year of the program, when it is fully implemented, the costs to the state will
exceed savings to the school districts by $43-59 million.[4]

Voucher Program Arguments
Voucher programs currently
exist in Arizona, Florida, Georgia, Maine, Ohio, Utah, Vermont, Wisconsin, and
the District of Columbia (National Conference of State Legislatures 2007;
National School Boards Association 2007; U.S. Department of Education 2007).
The voucher programs in these states are aimed at specific populations of
students, such as low-income students or students with disabilities. The debate
surrounding public funding of private education is not unique to Utah, although
there are many general arguments made in favor of vouchers, and in opposition
to vouchers. There are arguments that
are specific to Utah’s voucher law in part because it is the only state-wide
voucher law that will provide scholarships to all students who meet the basic
criteria outlined above.

Proponents of voucher programs
raise several arguments in support of providing public dollars for private
education. Most often these arguments begin with a call for improving the
quality of education in one of three ways. First, competition between public
and private schools will force public schools to improve the quality of the
education offered. Second, reducing
class sizes in public schools through vouchers will improve education. Third, a better education will be provided
in the absence of state bureaucracy.
Proponents in Utah also argue that the law will help the state avoid
increasing taxes and will increase funding for students in public schools. A final argument presented on behalf of
voucher programs is that vouchers provide parents, particularly low-income
parents, with a choice in their child’s education.

Opponents of voucher programs
rebut the arguments presented by pro-voucher supporters. To begin, opponents of vouchers state that
it is unclear whether vouchers will improve the quality of education in public
schools; specific concerns revolve around the lack of oversight in private
schools. Neither of Utah’s bills addresses
curriculum requirements in private schools, there are more lenient standards
for teacher qualifications in private schools, and there are different testing
requirements for students attending private schools.

Second, although proponents
state that vouchers will provide more opportunities for low and middle income
students to attend private schools, opponents argue that voucher scholarships will
not make private schools affordable for low income families (see Table 1 above
for an outline of scholarship amounts under Utah’s law). Further, opponents argue that vouchers can
divide public and private schools along socioeconomic lines.

Third, there are questions as
to whether public schools will be financially harmed by the voucher law. The Office of the Legislative Fiscal Analyst estimates
that by the 13th year of the program, when it is fully implemented,
the costs to the state will exceed savings to the school districts by $43-59
million.[5]

Finally,
there may be constitutional concerns with Utah’s voucher law. According to the Utah Voter Information
Pamphlet, available through the Lieutenant Governor’s Office, under the Parent
Choice in Education Program, public funds will be used to provide scholarships
for students who attend private schools, including private religious schools.
The use of public money for students attending private religious schools may
conflict with federal or state constitutional provisions that prohibit the use
of public money for religious purposes. In addition, other aspects of the program
may conflict with equal protection provisions of the federal or state constitution
or with state constitutional provisions relating to the State Board of
Education’s authority or the scope of the public education program. Because of
the program’s unique characteristics and the lack of a directly applicable
court ruling, it is unclear how a court would rule on any of these issues.

Table 3: Voucher Program
Arguments

Proponents of Vouchers

Opponents of Vouchers

Gives parents more influence
over their child’s education; particularly, the vouchers may provide more
educational opportunities to low income families.

The Voucher program wouldn’t
help the most disadvantaged. The
voucher amounts are inadequate and will not help low income students to
attend private schools. May increase
the divisions between public and private schools along socioeconomic lines.

Makes all schools better:

Forces public schools to improve in order to compete
with private schools

Reduces class sizes in public schools

Offers a better education due to the absence of
bureaucracy

Too little oversight of
private schools:

No curriculum requirements

Different standards for teachers

Different testing requirements for students

Increases funding for public
schools and keeps taxes low

Hurts public school funding –
diverting money from public schools ultimately weakens them.

Conclusion
Utah's state-wide voucher
program, the Parent Choice
in Education Program, must
be approved by Utah citizens
in the November election
before being implemented. The Parent Choice program will provide
scholarship vouchers between $500 and $3,000 to students who qualify to attend
eligible private schools. This
article summarized some
of the critical points of
the Parent Choice program.

[1] Income is based upon adjusted gross income as listed on the income tax forms; if a parent is
exempt from filing federal and state income tax forms, income shall be based on
income earned from work.

[2] The State of Utah has two main funds from which state
programs are funded, the Education Fund and the General Fund. The Education
Fund receives funds primarily (over 99%) from the corporate and personal income
taxes. The Education Fund (EF), as its
name would suggest, is spent on public and higher education. The General Fund (GF) receives dollars from
sales tax (83%) and a number of smaller taxes (liquor, cigarettes, severance,
etc.). The GF supports almost all state
programs besides public education including higher education, transportation,
corrections, health, human services, courts, etc.